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Date of article: 7 May 2010
Last updated: 11 May 2010

The Super System (Cooper) Review - SMSF report

The Superannuation System Review released its report Self-Managed Super Solutions setting out the recommendations on self-managed superannuation funds.

The Chair of the review panel, Jeremy Cooper, said "Whichever way we look at it, SMSFs are here to stay, but we want them to focus more on investing for retirement savings, rather than related party transactions, collectables and leverage. Most SMSFs already do this so the vast majority of SMSFs will not be affected by these particular proposals. We think this will be treated as good news in the SMSF sector."

Recommendations include:

  • Prohibiting investment in collectables and personal-use assets (such as artworks, wine collections, exotic cars and yachts).
  • Strengthening the competence and independence of approved auditors.
  • An online SMSF resource centre to help SMSF trustees build skills and make better decisions.
  • Making the ATO's penalty regime more flexible to enable more effective and equitable regulations.
  • Tightening the SMSF registration process, including the introduction of member identity requirements, to reduce instances of fraud and illegal early release schemes.
  • Reducing the potential to benefit illegally from related party transactions by prohibiting the acquisition of in-house assets and imposing restrictions on the way in which an SMSF can transact with related parties.